South Korea’s 4 Exchanges – 110.8 Billion Unwithdrawn Coins After Delisting!
This is likely due to the exhaustion of crypto investors in the Korean market.
Will STOs and other good news wake up the Korean market?
According to data obtained from South Korean lawmaker Yoon Young-duk of the Democratic Party of Korea, 110.8 billion coins were delisted from the country’s four major exchanges, excluding South Korea’s largest exchange, Upbit, between 2020 and August of this year.
How much is that?
On Bithumb, the second-largest exchange in South Korea, we looked at coins that were delisted from January 2023 to the end of August. The remaining supply totaled 8,814,572,203 tokens. This is a 38.53% increase compared to last year’s total of 6.363067520. The number of delisted coins continued to decline to 12,816,541 in 2020, 8,343,7091 in 2021, and 6.3 billion in 2022 before rising again this year.
For Coinone, the remaining supply was 24.8198 million by the end of August this year. This is similar to last year’s total of 251,982,4023. In 2020, there were 525.607.194 million, in 2021, 187.922 million, and in 2022, 25.1 billion.
In 2021, 396.8594 million, in 2022, 234.236 million, and by August 2023, 933.4252 million. This year, however, there weren’t many delisted tokens until August, reaching only 103,39.
So, what about Upbit?
Upbit, the No. 1 exchange in South Korea, responded to a query on the status of coins that have been delisted since the end of trading support in 2020. It is assumed that there are still crypto assets that have not been released by customers after the end of trading support. However, the number is still unknown.
(South Korea’s 4 Exchanges) Why?
Delisted coins plummet in price, giving crypto investors no incentive to return to them. In addition, the prolonged bear market has reduced the number of users on exchanges and frozen investor sentiment. Last year, the number of investors using exchanges also plummeted due to the Crypto Winter.
According to the Financial Intelligence Unit (FIU) under the South Korean Financial Services Commission, the number of accounts registered with cryptocurrency traders dropped from 13.1 million in the first half of last year to 11.78 million by the end of the year, a drop of about 10 percent. The gains have been limited by persistently high interest rates and regulations from the U.S. Securities and Exchange Commission (SEC).
Once an exchange decides to delist, it will give you a certain amount of time to withdraw your funds. However, even after this period, most exchanges will still support withdrawals for the delisted coins. After the delisting, you can still get your coins back even after the exchange’s withdrawal period. However, there are high fees and the inconvenience of not being able to withdraw your funds immediately. In addition, you can’t buy or sell on the exchange since it’s no longer supported.
There are also cases where the silver price of a coin that is no longer supported plummets, making it virtually worthless. As a result, there is no incentive to go to the exchange and pay the fees.
South Korea’s crypto market needs a breakthrough
Dunamu, which operates Upbit, reported revenue (operating income) and operating profit of 491.5 billion KRW and 298.5 billion KRW, respectively, in the first half of this year, plummeting 37.4% and 47.3% from 785 billion KRW and 560 billion KRW in the same period a year earlier.
“The decline in sales is mainly due to the shrinking global liquidity and the contraction of investor sentiment due to the prolonged economic downturn,” said Dunamu.
It seems like the time is ripe for a definitive boost to the South Korean crypto market, which was once buoyed by the news of STOs. Some believe that this could be an opportunity for the crypto market to focus on blockchain technology instead of just investment. This could be a turning point in the market’s health as the jade stone is covered.
Meanwhile, according to news reported on Wednesday, South Korean financial holding company Shinhan Investment & Securities, KB Securities, and NH Investment & Securities have signed a business agreement to form an STO consortium. They will be working on the following
– Build joint infrastructure for STOs and verify distributed ledgers
– Jointly respond to STO policies and establish industry standards
– Discover synergistic business models for STO issuance and distribution services
Can STOs revitalize the sluggish Korean crypto investment market?
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